Tenant Using Rental Property as Full Time AirBnB
San Diego, CA · Member since 2014 · 14 posts · 9 votes
Tenant Using Rental Property as Full Time AirBnB
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Oxnard, CA · Member since 2017 · 15 posts · 23 votes
8yIf you’re going to confront your tenant, create an AirBnb account with a fake name. Book yourself at your own property. Ask him to be there during check in because this is your first time doing AirBnB and you’re nervous. Get there early and let yourself in. Have a new lease agreement on the table ready for him to sign.
Might as well have some fun scaring the living day lights out of him. Video would be fun to share on BP.
90 Replies
- La Jolla, CA · Member since 2017 · 96 posts · 11 votes8yPeople are humorous, if he is even making monthly rent early, kick him out, sue him, do Airbnb yourself, more money! 🤔😱
Originally posted by @Account Closed:
If he's paying his rent you shouldn't care. Don't be that a-hole landlord. Just appreciate the fact that your tenant's trying to get into real estate investing as well and doing it the cheapest way possible to start. He probably dreams of owning multi-families, and is just doing what he can now to get started. If it's not costing you anything and he's paying his rent, why would you stop him?
So let me ask you this. Do you own your own business? One that you sacrificed vacations, weekends, nights, not buying a new car etc to make it work and grow? Do you let your clients come to your business use your materials, tools, computer, supplies and shop/office equipment to service their clients because they want to start their own business on the cheap? Because that’s what you’re telling Landlords they should be doing with that statement. Otherwise theire ..... oh yeah A-holes.
I care because it’s MY property. And i busted my *** to make it work and sacrificed a lot to get to where I’m at. And we had a agreement, If he wants to get in the real estate market fine. Go get your own loan put your money where your mouth is and take your own risks. You don’t have the right to put my property and my investment at risk because you want to get in the real estate game “on the cheap”. Lol @ “on the cheap” comment. yeah let me put my finances out there, my properties and my future at risk so you can get in the game on the cheap. I’ll get right in it. Why would I stop him? Because it’s my property not his. And I don’t want my property to be used in such manner. That’s all the reason I need. If that makes me a a-hole that’s fine with me.
What if I had a lease with you to rent say a two bedroom from me. Then after you move in I decided to rent out one of the rooms to a stranger. I mean I’m just trying to make money and get a bunch of multi family homes going. You’re ok with that right? Me breaking the lease! What if I decided to just raise your rent because I needed more money.
I’m willing to bet that if I broke the lease you would be all over me to stop. So why should I be ok with you breaking the lease.
I actually went to see a tenant today and he approached me with this exact thing we’re talking about. I nicely told him I’m not interested in doing this AirBNB at all not to mention my insurance specifically prohibits short term rentals. So now I’m going to be watching one property and if I see it listed, its over with these tenants. The property is in such high demand area it’s going to be rented within 3 days. If they want to try me go ahead and list it.
- Mason City, IA · Member since 2017 · 4 posts · 1 vote8y
Do all the legal and insurance things you need to do to make sure you will be able to sleep at night.
After the lease is up, have a meeting with him and discuss expansion with profit sharing. You basically have a management company taking care of your property with extra margin. It isn't easy increasing margin like this.
- Investor · Monterey, CA · Member since 2014 · 177 posts · 55 votes8y
I have a clause in the rental agreement that no "guests" can stay more than 2 nites a week....without landlord approval. I have had this problem with people moving their friends in more than once. I have an old house and the wear & tear with people coming and going can also add up. Good luck!
@Rob D. I like your analogy.
For those concerned about tenants doing this... stick a clause in your lease preventing tenant from profiting on a sublease and requiring any excess to be paid to the LL.
Gimer Law516 ReviewsOriginally posted by @Tom Gimer:
@Rob D. I like your analogy.
For those concerned about tenants doing this... stick a clause in your lease preventing tenant from profiting on a sublease and requiring any excess to be paid to the LL.
Yup. Already in there specifically by name. And a sign line next to it with a statement I have read and understand the above signed section. Thanks for the suggestion
- Hayward, CA · Member since 2017 · 91 posts · 40 votes8yIf the neighbors are complaining, I would play nice and say no to airBnB. And before you decide yes or no, check with your insurance company and check ur local ordinance.
@Matthew Fullam Matt, I suspect the 'next' level of 'scaling' on the STR continuum (since the top 100ish AirBnB 'hosts' are already doing this...) will be to approach absentee owners (such as yourself) in cities and towns they 'do business in' (and therefore have the housekeeping, maintenance, PMers, etc. already in place...) and advertise for receptive 'rental owners' to offer a split percentage of revenues? Or to at least pay say 10% more than 'market rent??' You might contact AirBnB and VRBO and ask if they have any companies hosting multiple properties in Denver (was it?) as you're considering working with someone doing STRs since you have a property that you feel might be a 'good fit?' I bought a course from a STR 'guru' a few months ago who has (or had?) 50- 100 places in major cities... and some of his students have over 100 STRs now, mainly in condo, etc. (HOA ok'd) clusters that are leased, lease optioned, or owned. And BTW... AB&B is getting ready to 'go public,' so this cottage industry is poised to EXPLODE in GROWTH in the near future... if anyone wants the next "Uber" IPO tip. Thereafter, the 'market' will consequently become increasingly more 'saturated...' and COMPETITIVE. And the TIME to be in "buy- n- hold" is AFTER the next (staged) 'market correction,' vs. the current 'seller's market.' ;-)
- Lake City, FL · Member since 2018 · 18 posts · 5 votes8y
Originally posted by @Jana Hristova:
The other issue is how legal is Airbnb in your city? In our area, less than 30 days rentals are not allowed. Recently an Airbnb operator was fined $25,000. If you are taking a risk you should be compensated.
Jana - I was doing a search for Airbnb regulations for Columbia County Florida and could find nothing. But did find this article in Floridapolitics.com April 2017:
“The Florida House of Representatives approved House Bill 425 Friday 63-56, essentially re-instituting a 2011 ban on cities or counties imposing any ordinances that would treat vacation rental homes any differently from any other house, condominium unit, or apartment in their communities.”
So I’m a little confused as to the regulations in Tampa that you mentioned versus this information.
Maybe I'm not understanding the essence of the law. I assumed it meant "hands off "as far as regulating STR.
- Property Manager · Tampa, FL · Member since 2016 · 34 posts · 25 votes8y
@KimBecker
http://www.tampabay.com/news/localgovernment/Real-...
I also found this article which seems to agree with your way of thinking.
- Rental Property Investor · Rohnert Park, CA · Member since 2014 · 307 posts · 160 votes8y@James Carlson So, how much over rent price would be a good amount to offer a landlord? I’m considering renting a place and using it as a full time Airbnb. I’m in the San Francisco North Bay Area
- Rental Property Investor · Rohnert Park, CA · Member since 2014 · 307 posts · 160 votes8y@Tyler Work Hi Tyler I will look into the “Safely” link that you provided for getting insurance for an Airbnb sublease. Do you have any suggestions of the legalities of doing an Airbnb sublease? I’m in the San Francisco Bay Area, which is probably different than the Denver laws, but any insights help! Thank you! Cheryl
- Real Estate Agent · Indianapolis, IN · Member since 2018 · 41 posts · 23 votes8y
Originally posted by @Matthew Fullam:
Thanks to everyone that has offered their opinion! There are obviously mixed views on how to handle this and I appreciate everyone taking the time to share. I think I know what I have to do next and will be sure to share the outcome! Just for the record, AirBnB is CURRENTLY allowed in my building (this may change February 12th, 2018), my neighbors have never complained, his reviews are great (clean/responsive), and he pays rent before the 1st of every month. Negatives; hes in breach of contract as my lease states no subletting, I have no idea if he has the proper insurance, he's outright lying to me, hes making more money on MY investment than I am (assumption). Stay tuned!
I'd agree with many here, quick and short he's profiting at your liability. You're the owner of the property and have liability I'd imagine even if he has insurance. You have the leverage, he is in breach of the lease. Unless you don't want to do the same thing he is doing with regard to AirBnB then he's done the market research and verified its possibility. You can offer him the opportunity to still do what he is doing with an increased lease, or remove the middle man and do it yourself assuming you plan to do the required work. You may actually find that his pay is based up managing the AirBnb and there is a small margin. In that case would it even be worth it to remove him and attempt to do it or just break the lease and get an actual normal tenant. If you can see the rates, approximate what he's making, remove expenses for cleaning and understand his net profit you can make a push for some of it.
- Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes8y
I've never done this, so I'm not sure what others who have done this might have to say. My thought would be to only offer a small amount over market, maybe $100, and instead emphasize the fact that you'll be seeing the property every few days, it will be cleaned every few days and that because of these two things, the property will stay in better shape than it would under any other kind of lease agreement.
Originally posted by @Gayle Eisner:
I have a clause in the rental agreement that no "guests" can stay more than 2 nites a week....without landlord approval. I have had this problem with people moving their friends in more than once. I have an old house and the wear & tear with people coming and going can also add up. Good luck!
How do you enforce this?
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